Industry Voices

Purpose-built student housing remains an attractive investment following a record year in 2017. Since student housing is still catching up to demand, and boasting cap rates on par with traditional multifamily, there are plenty of development, acquisition and value-add opportunities within the sector.

With March Madness lingering in the air, we at Triad Real Estate Partners wanted to take a look at some student housing analytical data based on athletic conferences. While the Southeastern Conference is generally known for its members’ prowess on gridiron, the SEC placed an impressive eight teams in the NCAA basketball tournament this year — a strong showing for any conference and the most in SEC’s long and storied history. In light of this accomplishment, we decided to make the SEC the first of a recurring look into ranking the student housing markets at each conference’s schools.

Take a moment and listen. Really listen. Do you hear that? Chances are that when you paused, you heard a sound. Whether it was annoyingly loud or barely audible, there was a noise, and you heard it. Even when sitting alone in a quiet spot, there is still noise — the hum of an appliance, music in the background, a bird chirping outside the window, traffic in the street, or the low rumble of an airplane overhead.

Institutions of higher education are constantly studying their plans and cramming for the next school year. The influx of different types of housing options for students — including classic dormitories, apartment-style residences and even university-owned, off-campus options — has made housing choices a key point of differentiation for colleges and universities. This, in turn, has created the need for institutions of higher learning across the country to have strong partners in the construction sector.

College campuses across the country are in a constant state of flux. Classrooms and academic spaces are changing, costs are rising and myriad factors are forcing universities to redefine the student experience. Student housing finds itself in the middle of this ever-evolving atmosphere.

As the demand for state-of-the art student amenities escalates and an increasing number of colleges are using housing as a marketing tool to attract the best and brightest students, new dormitories top the wish lists of universities around the nation. Residence hall design is also being jolted by technology. While mobile computing, ever-present internet connectivity and distance learning all affect how, when, and where students learn, advances in technology can ease on-campus construction woes, too.

While opportunity exists, on-campus construction presents unique challenges not shared by other construction projects — with little room for error. On-campus projects need to attract top student talent while remaining on schedule, on budget and minimizing disruption to its surrounding areas.

Amenities Galore!

Increasingly, lavish amenities are becoming signatures of student housing as students are beginning to demand more value from where they live. Ubiquitous internet connectivity is just one of the residential amenities that colleges are using as selling points to lure students.

For example, Uncommon Fort Collins, a recently completed student housing project for Colorado State University, features a fitness room complete with weights, cardio equipment, a ski simulator and a rock climbing wall, two outdoor courtyards, a lounge and a business center. While these amenities may appear excessive to their bill-paying parents, university officials say they’re fiercely competing for top student talent, so they strive to give them what they want.

Many universities view housing as an extension of their brand, consequently, on-campus housing is being designed to offer amenities rivaling market-rate apartments that compete for student renters. As a result, builders are considering how to incorporate luxurious amenities earlier in the design process. Advances in 3D building information modeling (BIM) have allowed the structure and engineering details that will eventually be built on site — including state-of-the-art amenities and academic and social spaces — to be captured in a fully detailed, 3D virtual model during the earliest stages of the design process. This advance enables architects to use software to model the structure as part of their typical project design workflow, in addition to driving efficient and expedited layout, design and system coordination.

School Construction Zones

Due to the nature of on-campus projects, the ability to keep surrounding areas “out of the construction zone” is crucial. Loud machinery and chatty construction crews create distracting noises that aren’t conducive to a positive learning environment, and at the end of the day, students pay to come to campus and learn.

Another technological advance working to generally improve student housing construction while minimizing disruption to the areas surrounding an on-campus project is the use of robotics. With lean manufacturing robotic systems, assembly proceeds according to engineered shop renderings created by advanced BIM software, building a digital plan that guides the assembler and highlights parts by order of assembly.

Automated robotic welding systems work directly from the architect’s model, allowing systems to fabricate building components before they arrive on site, which makes on-site installation easier than ever before. Building a brand new student residence on campus rather than simply assembling one is far less appealing to facilities directors when it comes to disruption. Building from scratch, on site is significantly more disruptive than buildings that only need to be bolted together.

The Bottom Line

A crucial factor in determining which company will or won’t receive a school construction bid is the bottom line. The majority of universities depend on state and federal funds, in addition to tuition payments, which means construction budgets are often rigid, with little to no wiggle room.

Many construction companies struggle to keep student housing projects under budget, but advancements that utilize robotics or automation are not only making job sites safer and projects faster to build, but these systems typically make the completion of a student housing project less expensive, too. When it comes to student housing projects, budgetary issues resulting from waste, rework, unreliable crews and poor quality are untenable.

However, advances in construction technology have opened the door for projects to be completed on budget. The level of precision unlocked by manufacturing robotics systems drastically reduces on-site waste and eliminates the need for costly and time-consuming rework in the field as building components do not need be cut and built on site — they are simply installed using QR codes to help on-site crews complete projects in less time, with fewer people.

On-Schedule Production

When it comes to student housing, universities have very strict deadlines, because when classes start, students need somewhere to stay. Construction methodology that enables technologies like BIM is ideal for these time-sensitive, multiunit projects because of its 3D scalable design aspect. When builders know the precise measurements and outcome of a project, the need for rework is greatly reduced.

Time-consuming, repetitive work that requires heavy lifting and precision is the ideal task for automated robotics systems. By receiving precise specifications and dimensions for every component, manufacturing robots progressively shape high-quality building components that yield an unmatched level of precision. Manufacturing robots are able to punch, dimple and cut building materials to precise measurements for assembly into entire building components like wall panels and trusses. Working with steel framing unlocks a level of precision that allows for improved structural stability, meaning mechanical, electrical and plumbing (MEP) tradespeople can begin work much earlier than with concrete structures.

Automated robotics systems allow for the creation of a seamless process — from design through installation. From eliminating costly rework to phasing in MEP tradespeople to begin working sooner, advances in construction technology are beginning to ensure student housing projects stay on time and on budget.

In the end, robotics systems and automation are becoming increasingly viable solutions for the school construction industry, allowing student housing projects to be built faster and for less money while improving on-campus safety by minimizing disruption. Even slight differences in operating expenses can unlock significant savings, and companies must be prepared to meet the demands of intelligent institutions with digital techniques and advanced technologies or they risk not having the tools get the job done.

Attracting millennial students to your property requires offering great amenities, especially those related to comfort and connectivity. Suntan booths, pools, media rooms, spas, flexible lease options, upscale furniture, Wi-Fi and cable are among the amenities used to draw college students into off-campus housing. The days of sterile, concrete, multi-roommate housing are fading as investors increasingly position student housing as a lucrative investment opportunity.

There are so many families that are unable to visit student-housing properties in which their children long to live. Virtual Reality (VR) video helps bridge the gap from potential resident in one state to actually owning a property in another while also utilizing the perfect technology to appeal to Generation Z.

Offered the choice, would you rather run security at a bank vault or at student halls of residence? At least the bank job is straightforward: keep the money inside, and everyone else out. If only protecting hundreds of young people was so easy.

Orlando, Fla. — A partnership between American Campus Communities (ACC) and Walt Disney World Resort has broken ground on a $630 million residential community for participants of the Disney College Program…

San Francisco — A public-private partnership between American Campus Communities (ACC) and San Francisco State University has broken ground on a 584-bed mixed-use community on the university’s campus in San Francisco.

West Lafayette, Ind. — Nelson Partners Student Housing LLC, a private placement 1031 exchange sponsor, has acquired The Fairway, a 298-bed student housing community located near Purdue University in West Lafayette.

Tuscaloosa, Ala. — Spaces Management, in partnership with Progressive Properties, has broken ground on Blue Haus, a 114-bed student housing community located near the University of Alabama in Tuscaloosa.

College Park, Md. — Joint venture partners Greystar Real Estate Partners LLC and Rockpoint Group have sold University View, a 1,573-bed student housing community located adjacent to the University of Maryland in…

Alexandria, Va. — StonebridgeCarras has been selected to build the Virginia Tech Innovation Campus, a $1 billion, 1 million-square-foot, technology-focused campus in Alexandria, less than two miles from Amazon’s HQ2 future site.

Tampa, Fla. — Colliers International has added three new members to its Tampa-based National Student Housing Group – Jonathan Holt as senior associate, Nicholas Coccodrilli as senior financial analyst and Meagan Dobson as client…

State College, Pa. — CA Student Living, the student housing investment and development division of CA Ventures, has broken ground on HERE at State College, a 510,112-square-foot mixed-use development located…

Student Housing Business and University Furnishings will present a complimentary webinar entitled “Designing Interiors for Gen Z — Creating Authentic Spaces in a Virtual World” on November 15th at 2 pm…

Charlotte, N.C. — Trez Forman Capital Group has provided $4.75 million in financing for a 390-unit, mixed-use community planned for development near the University of North Carolina at Charlotte campus.

Denver — Campus Advantage has been awarded management of two student housing communities located near the Auraria Campus, an educational facility which serves the University of Colorado - Denver, Metropolitan State…

Dallas — More than 185 student housing leasing, marketing and operations professionals gathered in Dallas yesterday to hone their social media marketing skills at SHB LeaseCon, held at the Westin Galleria.

Urbana-Champaign, Ill. — Ruckus Networks, an ARRIS company, and Pavlov Media, one of the nation’s largest private providers of broadband services for multifamily real estate, plan to trial U.S. Citizens Broadband…

Dallas — An all-star speaker line-up is being put together for LeaseCon: A Social Media, Digital & Traditional Marketing Boot Camp, the exciting new conference event from Student Housing Business and the InterFace Conference…

Tallahassee, Fla. — Berkadia has secured $17.5 million in construction financing for a 143-key Hotel Indigo set to open as part of Urban Street Development’s FSU CollegeTown district near Florida State…

St. George, Utah — Vintage Capital Partners, an investment affiliate of Redstone Residential, has sold Vintage Tabernacle, a 265-bed student housing community located near Dixie State University in St. George.

San Marcos, Texas — Asset Campus Housing has been awarded management of Lyndon at Springtown, a 510-bed student housing community currently under construction near Texas State University in San Marcos.

Dallas — A joint venture between Balfour Beatty Campus Solutions and Wynne/Jackson has completed the second and final phase of Northside, a 1,500-bed student housing community located near the University…

Chicago — A joint venture between Capstone Development Partners and Harrison Street Real Estate Capital has closed on equity financing for an on-campus, mixed-use student housing community on the University…

Vermillion, S.D. — Grandbridge Real Estate Capital has secured $22.3 million in construction financing for the development of a 496-bed student housing community near the University of South Dakota in Vermillion.

Richmond, Va. — Campus Apartments has acquired The Collection Midtown, a portfolio of 20 apartment buildings located within Richmond’s Fan and Museum District near Virginia Commonwealth University, for $31 million.

Rexburg, Idaho — Greystone has provided a $28.2 million Fannie Mae DUS loan for the acquisition of Northpoint Apartments, a student housing property located near Brigham Young University-Idaho in Rexburg.

Dallas — Student Housing Business and the InterFace Conference Group are pleased to announce the launch of a new niche conference — SHB LeaseCon: A Social Media, Digital & Traditional Marketing Boot Camp —…

Morgantown, W.V. — Highland Realty Capital has arranged a $10.3 million bridge loan for The Ridge at Morgantown, a 644-bed student housing community located near West Virginia University in Morgantown.

Orlando, Fla. — Preferred Apartment Communities Inc. (PAC) has acquired The Retreat at Orlando, an 894-bed, cottage-style student housing community located near the University of Central Florida in Orlando.

Champaign, Ill. — Gilbane Development Company has broken ground on Octave, a 538-bed student housing community located two blocks from the University of Illinois at Urbana-Champaign campus in Champaign.

Lafayette, La. — The University of Louisiana at Lafayette and RISE: A Real Estate Company have broken ground on a 281,000-square-foot mixed-use development located on the university’s campus in Lafayette.

Athens, Ga. — HFF has arranged the $30.4 million recapitalization of River Club Apartments and River Club Townhomes, two student housing communities operated as a single property near the University of…

Fairhope, Alabama — Leeman Covey has announced his retirement as president and CEO of the Collegiate Housing Foundation, a non-profit organization based in Fairhope, Alabama, that works to assist colleges and…

Toronto and Chicago — In an effort to expand its global investment management platform, Colliers International Group Inc. (NASDAQ: CIGI) has agreed to acquire 75 percent of Harrison Street Real Estate…

College Station, Texas — Preferred Campus Communities, a wholly owned subsidiary of Preferred Apartment Communities, has acquired The Tradition, an 808-bed student housing community located one block away from the Texas…

Pittsburgh — Duquesne University has finalized the sale of Brottier Hall, an apartment-style residence hall located on the university’s campus in Pittsburgh, to Radnor Property Group and Harrison Street Real Estate…

Washington, D.C. — Howard University and Corvias have announced the completion of renovations at Howard Plaza Towers East, a 1,163-bed residence hall located on the university’s campus in Washington, D.C.

Austin, Texas — Asset Campus Housing has been awarded management of Ballpark Apartments, which consists of several student communities in central Austin, including Ballpark East, Ballpark South and Ballpark West.

Atlanta — The University System of Georgia has released a request for qualified concessionaires (RFQC) for a student housing public-private partnership for seven University System of Georgia institutions.